WHICH TRANSACTIONS ARE SUBJECT TO THE REPORTING REQUIREMENTS
A reportable real estate transaction is a sale or exchange of any present or future ownership interest in
- Improved and unimproved land, including air space
- Inherently permanent structures including any residential, commercial, or industrial building
- Any condominium unit and its appurtenant fixtures and common elements (including land)
- Stock in a cooperative housing corporation
A sale or exchange includes an involuntary conversion due to a disaster or the imposition of imminent domain by a governmental unit.
Ownership interest is defined to include fee simple interests, life estates, reversions, remainders, and perpetual easements. However, it does NOT include options to acquire otherwise reportable real estate.
Real estate transactions specifically excepted from the reporting requirements are:
- Transactions that are not sales or exchanges
- Foreclosure sales
- Transactions with a total consideration less than $600.00
An example of a transaction that is not a sale or exchange is where otherwise reportable real property is transferred by gift or inheritance.
The following types of real estate are exempt from the reporting requirements:
- An interest in surface or subsurface natural resources or crops
- A burial plot or vault
- An unaffixed mobile home
The transfer of an unaffixed mobile home is not subject to the reporting requirements because it is normally treated as the transfer of personal property rather than real property.
Certain sales of principal residences are exempt from the reporting requirements. Please see below for additional information on sales of principal residences.
Who is Subject to the Reporting Requirements
Sales of Principal Residences
Contingent Payment Transactions
Other Escrow Reporting Requirements (Form 1099 MISC)
Husband and Wives
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